Starwood Sells Sheraton on the Park in Sydney, Australia

Starwood has sold Sheraton on the Park in Sydney, Australia to Sunshine Insurance Group Corporation (SIG) for A$463 million [US$399 million].

Starwood will continue to operate the hotel as a Sheraton under a long-term management contract.

Located opposite Hyde Park, Sheraton on the Park has won numerous accolades including New South Wales Tourism’s Hall of Fame awards for Best Luxury Accommodation; Australia’s Leading Hotel awards from World Travel Awards; and HM Awards for Best Meetings & Conference Property.

The hotel features 557 guest rooms, full-service dining, a Sheraton Club Lounge, rooftop health club, indoor heated pool, and spa with spectacular city views.

“We are pleased to advance our asset-light strategy with the sale of the iconic Sheraton on the Park hotel and look forward to working closely with SIG to ensure its continued success,” said Simon Turner, President of Global Development for Starwood. “The terms of this sale underscore the strength of the Sheraton brand and the success of this hotel, as well as the tremendous value of this property in a high barrier to entry market ... We’re continuing to see strong investor interest around the world for our remaining assets, and remain committed to finding the right owners and partners while securing long-term management contracts in order to create value for our shareholders.”

Starwood continues to expand its portfolio in Australia and the Pacific through management and franchise agreements. The company currently operates 14 hotels in Australia, including the recently opened Four Points by Sheraton Brisbane and Sheraton Melbourne Hotel. Upcoming openings include Aloft Perth Rivervale, The Westin Perth and W Brisbane in 2017, marking the brand’s reentry into the Pacific region.

Including this sale and the recent sales of The St. Regis Rome, the Sheraton Ambassador Monterrey hotel, and The St. Regis Bal Harbour, Starwood has completed over US $1.5 billion of hotel asset sales over the last three years.